Caramelized Onion and Bacon Dip

Caramelized Onion and Bacon Dip is the perfect mix of sweet, smoky, and creamy all in one bowl. The slow-cooked onions bring out a natural sweetness that pairs beautifully with…

By Alina • January 16, 2026 • Reading time: 6 min

Save Recipe Print Recipe

Tip: save now, cook later.

Caramelized Onion and Bacon Dip is the perfect mix of sweet, smoky, and creamy all in one bowl. The slow-cooked onions bring out a natural sweetness that pairs beautifully with savory, crispy bacon bits. It’s rich, flavorful, and so easy to scoop up with your favorite chips or veggies.

I always make this dip when friends are coming over because it disappears fast—everyone loves how the caramelized onions add a nice depth without being too strong. A little tip: cooking the onions low and slow really makes a difference in flavor, and if you’re like me, you might find yourself sneaking spoonfuls before it even reaches the table.

My favorite way to serve this dip is in a rustic bowl surrounded by an assortment of crunchy crackers and fresh sliced cucumbers. It’s great for game nights, casual get-togethers, or even just a cozy night at home. This dip feels like a warm hug, especially when paired with a cold drink and good company.

Key Ingredients & Substitutions

Onions: Yellow onions work best for caramelizing because of their natural sweetness. If you want a milder taste, you can use sweet onions or even shallots. Just remember, the longer you cook them, the sweeter they get!

Bacon: Bacon adds great smoky flavor and crunch. For a healthier choice, try turkey bacon or smoked tempeh. You can also add cooked pancetta if you want a similar taste with a twist.

Cream Cheese, Sour Cream & Mayonnaise: These give the dip its creamy base. You can swap sour cream for Greek yogurt for a tangier, lighter option. For a dairy-free version, try vegan cream cheese and plant-based mayo.

Cheeses: Mozzarella melts beautifully and gives a nice stretch, and Parmesan adds a sharp bite. Feel free to mix cheddar with mozzarella for a richer flavor. Vegan cheeses are also an option if needed.

How Do I Perfectly Caramelize Onions Without Burning Them?

Caramelizing onions takes time but really brings out their sweetness. Here’s how I do it:

• Heat oil or butter over medium-low heat (not too hot!)
• Add sliced onions and a pinch of salt to help draw out moisture
• Stir occasionally, cooking for about 30-40 minutes until deep golden brown
• Be patient! If they start sticking or browning too quickly, lower the heat and add a splash of water
• Add garlic and thyme near the end to avoid burning the garlic

This slow process is what gives the dip its rich, sweet onion flavor that balances so well with the smoky bacon.

Equipment You’ll Need

• Large skillet – perfect for slowly caramelizing onions without burning them.
• Small pan – ideal for cooking bacon crisp and evenly.
• Mixing bowl – big enough to combine all the creamy ingredients smoothly.
• Oven-safe baking dish or skillet – lets you bake and serve the dip in the same dish.
• Wooden spoon or spatula – great for stirring onions and mixing ingredients gently.

Flavor Variations & Add-Ins

• Swap bacon with cooked, crumbled sausage for a spicy twist that pairs well with caramelized onions.
• Add chopped fresh rosemary or sage instead of thyme for a different herbal note.
• Mix in some chopped roasted red peppers for a pop of color and sweet flavor.
• Use smoked gouda or sharp cheddar cheese to deepen the cheesy, smoky taste.

Caramelized Onion and Bacon Dip

Ingredients You’ll Need:

For the Dip:

• 4 large onions, thinly sliced
• 6 slices of bacon
• 8 oz cream cheese, softened
• 1 cup sour cream
• 1 cup mayonnaise
• 1 cup shredded mozzarella cheese (or a blend like mozzarella and cheddar)
• 1 cup shredded Parmesan cheese
• 2 tablespoons olive oil or butter (for caramelizing onions)
• 2 cloves garlic, minced
• 1 teaspoon fresh thyme leaves (plus extra for garnish)
• Salt and black pepper, to taste

For Serving:

• French bread slices or crackers

Time Needed

This recipe takes about 45 minutes total. You’ll spend about 30-40 minutes slowly caramelizing the onions, 10 minutes cooking the bacon, then about 20-25 minutes baking the dip. Prep and assemble time is quick and straightforward!

Step-by-Step Instructions:

1. Caramelize the Onions

Heat the olive oil or butter in a large skillet over medium-low heat. Add the sliced onions and a pinch of salt. Cook slowly, stirring occasionally for 30-40 minutes until the onions turn deeply golden and sweet. In the last 2 minutes, stir in the minced garlic and thyme leaves. Remove from heat and set aside.

2. Cook the Bacon

In another pan, cook the bacon over medium heat until crispy. Place cooked bacon on paper towels to drain excess grease, then chop into small pieces.

3. Prepare the Dip Base

In a large bowl, mix the softened cream cheese, sour cream, and mayonnaise until smooth and combined.

4. Mix in Cheeses and Onions

Fold in the shredded mozzarella and Parmesan cheeses along with most of the caramelized onions—reserve a little onion for the top. Season with salt and pepper to taste.

5. Assemble and Bake

Preheat the oven to 375°F (190°C). Transfer the dip mix to an oven-safe baking dish, spreading it evenly. Top with the reserved onions and chopped bacon. Bake for 20-25 minutes until bubbly and golden on top.

6. Serve

Take the dip out of the oven and garnish with fresh thyme sprigs. Serve warm with toasted French bread slices or your favorite crackers.

Can I Make This Dip Ahead of Time?

Yes! Prepare the dip through step 4, cover it tightly, and refrigerate for up to 2 days. When ready to serve, top with the reserved onions and bacon, then bake as directed.

Can I Use Frozen Onions or Bacon?

It’s best to use fresh onions for caramelizing since frozen ones can release too much water and affect texture. For bacon, you can use frozen, but thaw it completely in the fridge before cooking for even crisping.

What Can I Substitute for Cream Cheese?

You can substitute Greek yogurt or a soft ricotta cheese for a lighter option, though the dip may be less creamy and won’t bake up quite the same.

How Should I Store Leftovers?

Store any leftover dip in an airtight container in the fridge for up to 3 days. Reheat gently in the oven or microwave until warmed through before serving.